CBN: We Will Sustain Forex Liquidity
The Central Bank of Nigeria (CBN) has vowed to sustain the current liquidity in the foreign exchange market with the injection of $280 million into various sectors of the market.
The Apex bank has also commenced its weekly $20,000 sale to licensed Bureaux de Change (BDCs) and further announced the opening of bids for offering $100m wholesale 7-45 days forwards through the Deposit Money Banks (DMBs).
According to a statement from the apex bank on Tuesday, gave a breakdown of the intervention indicating that "invisible such as Basic Travel Allowance, Personal Travel Allowance, medical bills and tuition received $80million, while the Small and Medium Enterprises (SMEs) window received $100 million. Together with the wholesale bid auction, the CBN, on Tuesday, sold $280 million into the market.”
While confirming the release, the Bank’s spokesman, Isaac Okorafor, noted that the new window for SMEs would no doubt boost the business of SMEs through the importation of eligible finished and semi-finished items, thereby boosting FOREX supply to the retail business segment of the market.
Okorafor added that “the CBN introduced the use of FORM Q for the SMEs, which requires just basic documentation, to ease their documentation challenges usually encountered by this category of businesses. He reiterated that SMEs are allowed to purchase $20,000 per quarter on this arrangement.”
While reacting to the sale of forex to BDCs, CBN Stated that the decision was taken to ensure that the high volume demand by low-end users are met promptly.
The apex bank thereafter urged the market participants to abide by the rules to ensure the preservation of our external reserves, stability of our financial system, and growth of our economy to the benefit of all Nigerians, the Bank’s spokesman warned that “the CBN would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders, be they banks or their staff
The Apex bank has also commenced its weekly $20,000 sale to licensed Bureaux de Change (BDCs) and further announced the opening of bids for offering $100m wholesale 7-45 days forwards through the Deposit Money Banks (DMBs).
According to a statement from the apex bank on Tuesday, gave a breakdown of the intervention indicating that "invisible such as Basic Travel Allowance, Personal Travel Allowance, medical bills and tuition received $80million, while the Small and Medium Enterprises (SMEs) window received $100 million. Together with the wholesale bid auction, the CBN, on Tuesday, sold $280 million into the market.”
While confirming the release, the Bank’s spokesman, Isaac Okorafor, noted that the new window for SMEs would no doubt boost the business of SMEs through the importation of eligible finished and semi-finished items, thereby boosting FOREX supply to the retail business segment of the market.
Okorafor added that “the CBN introduced the use of FORM Q for the SMEs, which requires just basic documentation, to ease their documentation challenges usually encountered by this category of businesses. He reiterated that SMEs are allowed to purchase $20,000 per quarter on this arrangement.”
While reacting to the sale of forex to BDCs, CBN Stated that the decision was taken to ensure that the high volume demand by low-end users are met promptly.
The apex bank thereafter urged the market participants to abide by the rules to ensure the preservation of our external reserves, stability of our financial system, and growth of our economy to the benefit of all Nigerians, the Bank’s spokesman warned that “the CBN would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders, be they banks or their staff
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